Typically,the only credit to the retained earnings account for a corporation is:

Question

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Retained earnings represent profits that have not been paid out to shareholders in the form of dividends. Therefore, the retained earnings account is increased by the net income earned by the corporation during a given period. Any net losses would decrease the balance of the account. The initial investment of stockholders (choice A) is recorded in the common stock account, and withdrawals by owners (choice D) would decrease a different type of equity account called retained earnings.

Typically,the Only Credit to the Retained Earnings Account for a Corporation